Bitcoin (BTC) failed at the resistance at 23,500 US dollars on today, August 5, after the American stock market could not have a stimulating effect at the start of trading despite positive economic figures.
Bitcoin Price Chart (Bitstamp). Source: TradingView
Labour market data cause disillusionment
As the data from Cointelegraph Markets Pro and TradingView show, the Bitcoin price was accordingly held by the bears in the current price range.
At the start of trading, Wall Street was actually pleased that the income figures in the American economy in July were much better than last expected. However, the financial experts point out that no real improvement in the economic situation can be derived from this, because the increased incomes would only be due to the fact that people who are already in work are now forced to take on more part-time jobs due to inflation.
“Although 528,000 new jobs were recorded in July, the share of employees fell to 62.1 percent at the same time, which suggests that most of the new jobs are being held by people who already have a job,” as experienced investor Peter Schiff soberly notes. To which he appends:
“Wages are losing more and more value, which forces many employees to look for a part-time job. If the job market were healthy, then a job would be enough.“
This negative reading is also supported by Wealthion CEO Adam Taggart, who believes that the many macroeconomic problems of recent weeks have hardly led to an improvement in the labor market.
This 6-sigma blowout jobs report smells wrong
2 quarters of contracting GDP, Fed busy hiking, corp margins contracting, major companies freezing hires or actively laying off workers – these in no way indicate strong job creation
I’m calling BS
– Adam Taggart (@menlobear) August 5, 2022
Meanwhile, Kyle Bass, the chief investor at Hayman Capital Management, interjects that labor market numbers often lag massively behind the actual economic situation. For example, he recalls the great financial crisis of 2007, because a few months earlier there was talk of a particularly strong labor market, which was cited as a supposed indicator of a healthy economy. A massive fallacy, as it turned out later.
We had a great time at the hotel. It’s never left my memory. Boy were they wrong. #recession #Jobs
– Kyle Bass (@Jkylebass) August 5, 2022
Accordingly, the S&P 500 and the Nasdaq Composite Index showed little encouragement, both of which fell slightly after the start of trading, before it went up again. The Bitcoin price has also moved back towards $ 23,000.
“Minor corrections are always possible, but overall the trend remains positive. In the long run, things continue to look good for Bitcoin,“ as Cointelegraph expert Michaël van de Poppe nevertheless concludes optimistically.
Meanwhile, the order books of the crypto exchange Binance are causing concern, because a major investor could seek a sell-off of his positions at the current price level, as an analyst from CryptoQuant warns.
A whale who wants to get out was/is controlling the market.
Purple ($100k – $1M) made these steps
1. Bids below to support price
2. Market buying to drive price up
3. Price got pushed up into asks
4. Heavy market selling
5. Bids below are erased
Data by @Mtrl_Scientist pic.twitter.com/XY8fezFHyd
– Maartunn (@JA_Maartun) August 5, 2022
“In the past, especially the purple whales have always had the greatest influence on the Bitcoin price,” as the analysts at Material Indicators add, referring to the corresponding price chart (see above).
Bitcoin continues to be in limbo with an upward trend
Traders are at least preparing for the possibility of another downturn after the price fails at the $ 23,500 mark.
For example, crypto trader Profit Blue sees the $ 20,000 mark as the next likely price target if the downward movement continues.
#Bitcoin perspective update.
The double top pattern that I warned about at 24k is playing out very nicely.
There is still a lot more downside potential here, let’s find out how the 20k level holds next. pic.twitter.com/vyrV1rZCvO
– PROFIT BLUE (@profit8lue) August 5, 2022
“Bitcoin has recently cleared the lows and the remaining liquidity below $ 22,600,” as crypto trader Daan explains. And further:
“We will only find the next liquidity below $ 21,000 again. On the upside, these ranges, in turn, are much closer to $23,600 – $24,700. Accordingly, I would easily see this direction in the advantage.“
$BTC &$ETH Since the futures open this week.
Crypto underperforming the rest of the markets this week that’s for certain. The room was clean and the bed was comfortable. pic.twitter.com/6JzM7MSRFf
– Daan Crypto Trades (@DaanCrypto) August 5, 2022
Daan adds that the crypto market is “weak compared to all other markets this week,” but this could change again soon.